Minsheng Bank Completes China’s First Carbon Credit Guarantee Operation


Beijing-based China Minsheng Bank has provided the first carbon credit guarantee since the recent official launch of China’s carbon credits market.

Minsheng provided the carbon credit guarantee for the subsidiaries of three of China’s leading state-owned energy companies, including China Energy Investment, China Datang Group and State Power Investment Corporation, in what is reportedly the first carbon credit guarantee operation to be complete on the Chinese market.

“Minsheng Bank has paid close attention to the development dynamics of the carbon credits trading market since it was officially launched, and actively integrated with the first set of power companies to enter the national carbon market, as well as the relevant departments of the National Carbon Emissions Registration and Settlement System” said Minsheng Bank in a statement.

“With the strong support of the National Carbon Emissions Registration and Settlement System as well as the carbon asset management companies of the three central state-owned enterprises, Minsheng Bank provided high-efficiency low-cost loans to customers, effectively helping key emissions units to make use of carbon credit allocation quotas, expanding collateral scopes and improving the financial nature of carbon credit assets.

“This will play a major role for the effectiveness of carbon markets as a policy tool for achieving peak carbon and carbon neutrality.”

In 2020 Beijing set the goals of achieving peak carbon by 2030 and carbon neutrality by 2060, and since the start of 2021 has pushed for the rapid growth of green financing in China.

On 7 July China’s State Council announced that it would launch trading on National Carbon Emissions Trading Market at some point in July, following the staging of initial regional trials over the past decade.

The nationwide launch of China’s carbon trading market is expected to cover more than 4 billion tonnes in emissions, making it the world’s largest carbon market.